Recording & Tracking Employee Personal Tool Purchases

Recording & Tracking Employee Personal Tool Purchases

Customers & Accounts Receivable, Payroll Tips, Vendors & Accounts Payable
This question came up on a discussion list that I belong to over the weekend and I thought "hey, what a great blog post and how to tip this would make"!  So here goes! I am bookkeeper for a construction company.  Sometimes the workers purchase tools on the company American Express card and write TOC for "Take Out of Check" on the receipt.  There are oftentimes material expenses for the company on the same receipt. How do I record this?  What they did before was to subtract the amount from the gross wages when called into ADP, so it's kind of a pay advance. But don't advances require the taxes to be taken out? Should I get check breakdown and subtract from net wages instead or treat as a loan?…
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Employees and Company Credit Cards – What’s the Charge?

Employees and Company Credit Cards – What’s the Charge?

Be A Better Bookkeeper, From Our Guest Bloggers, Vendors & Accounts Payable
If you provide your employees with a company credit card, eventually someone is going to use it for a personal expense. In many cases, the employee is not attempting to defraud the company. But in other cases, it can be intentional. Either way it can create potential problems for your business. Several years ago, one of my clients issued her bookkeeper a company credit card. After a period of time, the bookkeeper regularly used the company credit card for personal purchases and did not notify the employer or reimburse the company. As the balance on the credit card increased, the bookkeeper began making partial payments on the increasing balance. My client completely trusted her bookkeeper, and never reviewed the credit card statements prior to payment, and the balance became quite…
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